Nobel Prize Economist On Trump's Budget: 'You Could Say It’s A Collection Of Lies Put Together' (Demo)

By Gary Reber Uncategorized May 27, 2017

On May 24, 2017, Walter Einenkel writes on the Daily Koz:

Nobel Prizer winning economist and former World Bank Chief Economist Joseph Stiglitz, who has studied market inequalities more intensely than Donald Trump has studied his hair follicles, was interviewed by Amy Goodman on Democracy Now! Asked about what he thought of the newly released White House budget, he had this to say.

“It’s like everything else: It’s made up. You could say it’s a collection of lies put together. It doesn’t make any economic sense. I don’t think anybody who’s looked at it has—can fathom the economics. I mean, you mentioned one thing, the 3 percent growth rate, which is the largest deviation in estimate relative to the CBO on record. You know, when I was chairman of the Council of Economic Advisers, we wanted to be responsible, and we always were conservative and were very careful, getting the views of everybody, wanted to make sure that our numbers were reasonable. He’s made no pretense to be reasonable.

“In fact, what’s striking is, while he assumes that there’s going to be more growth, if you look at the budget, it’s designed to reduce growth. He cuts out support for science, for R&D, which is the basis of productivity growth. He cuts out support for job retraining, so when people leave one job, they can be trained for the next job. He cuts out support for Pell grants, so those who have low income can get the education so they can live up to their potential. All these are things that actually lower economic growth. So I would say this is not a growth budget, this is a no-growth budget.”

Stiglitz, never short on words, continues to explain how the “numbers” in the budget are “mind-bending,” and clearly bullshit. To top it off, Stiglitz explains that every single thing Trump and Mulvaney says they’re going to do with this budget is contradicted by what this proposed budget wants to enact.

The interview begins around the 4 minute mark.

http://www.dailykos.com/story/2017/5/24/1665670/-Nobel-Prize-economist-on-Trump-s-budget-You-could-say-it-s-a-collection-of-lies-put-together

The path to significant economic growth is to adopt the proposed Capital Homestead Act (aka Economic Democracy Act), which would create broad capital ownership simultaneously with the growth while at the same time job opportunities would significantly expand. Productive capital is increasingly the source of the world’s economic growth and, therefore, should become the source of added property ownership incomes for all.

In a democratic growth economy, the ownership of productive capital assets would be spread more broadly as the economy grows, without taking anything away from the 1 to 10 percent who now own 50 to 90 percent of the corporate wealth. Instead, the ownership pie would desirably get much bigger and their percentage of the total ownership would decrease, as ownership gets broader and broader, benefiting EVERY citizen (children, women and men), including the traditionally disenfranchised poor and working and middle class. Thus, productive capital income, from full earnings dividend payouts, would be distributed more broadly and the demand for products and services would be distributed more broadly from the earnings of capital and result in the sustentation of consumer demand, which will promote economic growth and more profitable enterprise. That also means that society can profitably employ unused productive capacity and invest in more productive capacity to service the demands of a growth economy. As a result, our business corporations would be enabled to operate more efficiency and competitively, while broadening wealth-creating ownership participation, creating new capitalists and “customers with money” to support the products and services being produced.

Support Monetary Justice at http://capitalhomestead.org/page/monetary-justice.

Support the Capital Homestead Act (aka Economic Democracy Act) at http://www.cesj.org/learn/capital-homesteading/, http://www.cesj.org/learn/capital-homesteading/capital-homestead-act-a-plan-for-getting-ownership-income-and-power-to-every-citizen/, http://www.cesj.org/learn/capital-homesteading/capital-homestead-act-summary/ and http://www.cesj.org/learn/capital-homesteading/ch-vehicles/.

Nobel Prize Economist On Trump's Budget: 'You Could Say It’s A Collection Of Lies Put Together' (Demo)

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